2014 ACTIVITY AND RESULTS
Paris, February 12th, 2015
2014: GOOD PERFORMANCE BY THE BUSINESSES, CONTRIBUTION UP +3.5%
Net banking income: EUR 23.6bn, +5.0%* vs. 2013
Stable business net banking income: -0.5%* vs. 2013
Good control of operating expenses: -1.9%* vs. 2013
Sharp decline in the Group’s net cost of risk: -25.2%* vs. 2013
Businesses’ operating income up +20.9%*
Increase in Group net income to EUR 2,692m vs. EUR 2,044m in 2013
Businesses’ contribution to Group net income: EUR 3,504m, +3.5% vs. 2013
Fully loaded Basel 3 CET1 ratio: 10.1% (10.0% at end-2013)
Leverage ratio: 3.8% at end-2014
EPS(1): EUR 2.92
Proposed dividend: EUR 1.20 in cash (payout ratio of 40%)
Q4 14: Increase in Group net income to EUR 511m (Q4 13: EUR 191m)
Net banking income up +7.5%* vs. Q4 13
Lower operating expenses*: -5.3%* vs. Q4 13
Sharp decline in the net cost of risk: -10.5%* vs. Q4 13
*
When adjusted for changes in Group structure and at constant exchange rates.
**
Excluding non-economic items (revaluation of own financial liabilities and Debt Value Adjustment) for EUR +77m in Q4 14 and EUR -101m for 2014
in net banking income, or an impact on Group net income of respectively EUR +51m and EUR -66m; in Q4 13 (2013): impact in net banking income
EUR -397m (EUR -1,509m); on Group net income EUR -261m (EUR -989m). See methodology notes.
Items relating to financial data for 2013 have been restated due to the implementation of IFRS 10 and 11 which apply retrospectively as from January 1st,
2014.
(1) After deducting interest, net of tax effect, to be paid to holders of deeply subordinated notes and undated subordinated notes for 2014 (respectively
EUR -413 million and EUR -7 million), and correction of the effect of capital gains/losses on partial buybacks recorded over the period (i.e. EUR -6
million in Q1 14). See methodology note No. 3. Excluding the revaluation of own financial liabilities, and DVA (Debt Value Adjustment on financial
instruments as a result of the implementation of IFRS 13), earnings per share calculated accordingly amounts to EUR 3.00.
PRESS RELATIONS
LAETITIA MAUREL
+33(0)1 42 13 88 68
Laetitia.a.maurel@socgen.com
NATHALIE BOSCHAT
ASTRID FOULD-BACQUART
+33(0)1 42 14 83 21
+33(0)1 56 37 67 95
Nathalie.boschat@socgen.com Astrid.Fould-Bacquart@socgen.com
SOCIETE GENERALE
COMM/PRS
75886 PARIS CEDEX 18
SOCIETEGENERALE.COM
ANTOINE LHERITIER
+33(0)1 42 13 68 99
Antoine.lheritier@socgen.com
A FRENCH CORPORATION WITH SHARE CAPITAL OF
EUR 1 006 509 557.50
552 120 222 RCS PARIS
1
Societe Generale’s Board of Directors met on February 11th, 2015 and approved Societe Generale’s
financial statements for 2014.
The Group presented its strategic objectives in May 2014. It also pursued efforts to adapt to the new
economic and regulatory environment, based on its customer-focused universal banking model, the
deployment of synergies and the implementation of its cost savings plan. During the year, Societe
Generale continued with the refocusing of the portfolio in order to optimise the allocation of capital to the
businesses: in particular, it increased its stake in Boursorama and Rosbank, acquired all of Newedge,
disposed of its Private Banking subsidiary in Asia and refocused its consumer finance business on the
Europe region and Africa.
The Group’s net banking income totalled EUR 23,561 million for 2014 (+5.0%* vs. 2013), with a decline in
operating expenses (-1.9%*). The cost savings plan under way has already helped secure more than 80%
of the EUR 900 million of savings expected by end-2015. The net cost of risk was substantially lower
(-25.2%*), despite a total collective provision of EUR -400 million booked in 2014 in respect of litigation risk,
testifying to the quality of the Bank’s portfolios.
In a particularly complex economic environment in 2014, marked by significant fluctuations in both
currencies and commodity prices, as well as a challenging economic situation in some European countries,
the Group’s businesses provided further evidence of their robustness. With generally stable net banking
income over the period (-0.5%*), operating expenses under control (-1.0%*) and a substantially lower cost
of risk, their contribution to Group net income came to EUR 3,504 million in 2014, up +3.5% vs. 2013. This
contribution includes EUR -725 million of non-recurring costs in respect of the refocusing of consumer
finance activities at end-2014 and the goodwill write-down on International Retail Banking & Financial
Services’ activities in Russia. When restated for these non-recurring items, the businesses’ contribution
would be nearly 25% higher than the previous year: stable in French Retail Banking (+0.8%) in a sluggish
economic environment, up +12.5% in International Retail Banking & Financial Services, driven by
increased earnings in Europe and in Financial Services to Corporates and Insurance, and a sharp increase
(+59.1%) in Global Banking & Investor Solutions, notably in Financing & Advisory.
At end-2014, the Group’s capital ratios provided further confirmation of their robustness. The Group’s fully
loaded Common Equity Tier 1 ratio stood at 10.1%, according to CRR/CRD4 rules. The Group has used
the activities’ substantially positive earnings contribution (+103 basis points in 2014) in a balanced manner
as part of its capital management. This contribution helped finance the growth in the Group’s risk-weighted
assets, transactions relating to the acquisition and disposal of subsidiaries, new regulatory requirements
and capital remuneration. The Group’s total capital ratio stood at 14.3% for a leverage ratio of 3.8% at end2014 according to CRR/CRD4 rules including the delegated act adopted in October 2014, vs. 3.5% at end2013. The short-term liquidity ratio (LCR) stood at 118% at end-2014.
Based on these results, the Board of Directors has decided to propose the payment of a dividend of
EUR 1.20 per share, payable in cash, to the Annual General Meeting, with dividend detachment on May
26th, 2015 and payment on May 28th, 2015, subject to a favourable vote by the Annual General Meeting
(1)
on May 19th, 2015. This amount corresponds to 40% of earnings per share , net of the effect of noneconomic items (revaluation of own financial liabilities and DVA).
(1)
See methodology note No. 3
2/27
Commenting on the Group’s results at end-December 2014, Frédéric Oudéa – Chairman and CEO –
stated:
“In 2014, Societe Generale successfully progressed in the implementation of its strategy focused
on satisfying its customers, innovation, notably in digital technologies, and profitable growth. In a
challenging and unstable environment, the Group posted a good business performance, confirming
the businesses’ growth potential. The Group also demonstrated good control of costs and risks,
which were substantially lower.
In 2015, and given its very solid balance sheet, the Group intends to pursue its 2016 strategic plan
in a determined and disciplined manner. Supported by the effective organisational structure in
place, enhanced governance and its teams’ commitment to serving its customers, Societe Generale
will maintain the pace of its transformation with, as operating priorities, the continuation of targeted
developments and the deployment of synergies, good control of costs and risks and the continued
optimisation of capital allocation between the businesses. Despite an environment that remains
uncertain and volatile, the Group is therefore embarking on this new financial year with
confidence”.
3/27
1 - GROUP CONSOLIDATED RESULTS
In EUR m
Net banking income
On a like-for-like basis*
Net banking income**
2013
2014
22,433
23,561
23,942
23,662
Operating expenses
(16,047)
On a like-for-like basis*
(16,016)
Gross operating income
On a like-for-like basis*
Change
2014 vs.
2013
+5.0%
+5.0%
-1.2%
Q4 13
Q4 14
Change
Q4 vs. Q4
5,696
6,123
+7.5%
+7.5%
-0.8%
6,093
6,046
-0.2%
(4,405)
-1.9%
(4,263)
-3.2%
-5.3%
1,291
1,860
+44.1%
+55.9%
(1,045)
(906)
-13.3%
246
954
6,386
7,545
(4,050)
(2,967)
Operating income
On a like-for-like basis*
Net profits or losses from other assets
Impairment losses on goodwill
2,336
4,578
(50)
(525)
NM
134
(50)
(84)
0
x3.9
x 5,3
NM
NM
Reported Group net income
2,044
2,692
+31.7%
191
511
x2.7
Group ROE (after tax)
4.1%
5.3%
0.8%
3.6%
Net cost of risk
+18.1%
+23.7%
-26.7%
+96.0%
x 2,1
Net banking income
The Group’s net banking income totalled EUR 6,123 million in Q4 14 (EUR 5,696 million in Q4 13, +7.5%*),
taking the Group’s net banking income to EUR 23,561 million for 2014, up +5.0%* vs. 2013. If noneconomic items are stripped out, the Group’s net banking income was slightly lower than in 2013 (-1.2%),
in a particularly challenging economic environment in Europe.
Against this backdrop, the businesses’ net banking income was generally stable in 2014 (-0.5%*), and up
+0.9%* in Q4 14 vs. Q4 13.
-
French Retail Banking (RBDF) revenues were down -1.1% excluding the PEL/CEL effect in 2014
(and -1.0% in Q4 14 vs. Q4 13) at the end of a year marked by weak loan demand and revenue
pressures caused by the new French banking law taking effect in 2014. However, RBDF provided
further evidence of its commercial dynamism, with a record number of accounts opened in 2014.
-
In International Retail Banking & Financial Services (IBFS), revenues were up +1.5%* in 2014
vs. 2013, driven by the growth of activities outside Europe: accordingly, International Retail
Banking in Africa, the Mediterranean Basin and Overseas saw its net banking income improve by
+4.1%* while Financial Services to Corporates and Insurance enjoyed an increase of +6.7%* in
2014. Russia’s net banking income was resilient (-0.8%*) in 2014. The division’s revenues fell
-1.2%* in Q4 14.
-
Global Banking & Investor Solutions (GBIS) posted slightly lower revenues in 2014 (-0.7%*),
despite a good last quarter (+6.0%* in Q4 14 vs. Q4 13). Financing & Advisory enjoyed a good
year in 2014, with revenues up +11.7%*; all in all, Corporate and Investment Banking revenues
were generally stable (-0.7%*) in 2014. In Asset and Wealth Management, revenues were up
+2.5%* in 2014. In Securities Services and Brokerage, revenues were down -3.5%* vs. 2013, but
picked up at the end of the year following the integration of Newedge.
The accounting impact of the revaluation of the Group’s own financial liabilities was EUR -139 million
in 2014 (EUR -1,594 million in 2013), including EUR +44 million in Q4 14 (EUR -379 million in Q4 13). The
DVA impact (see methodology note No. 8) totalled EUR +38 million in 2014 (including EUR +33 million in
4/27
Q4 14) vs. EUR +85 million in 2013 (and EUR -18 million in Q4 13). These two factors constitute the
restated non-economic items in the analyses of the Group’s results.
Operating expenses
The Group’s operating expenses amounted to EUR 16,016 million for 2014, down -1.9%* vs. 2013. The
decline testifies to the cost control efforts undertaken over several years and the effectiveness of the cost
savings plan launched in 2013. The plan is designed to save EUR 900 million of recurring costs by 2015,
and has already met more than 80% of its objectives for only around 60% of projected investment costs.
Operating income
The Group’s gross operating income amounted to EUR 7,545 million for 2014, vs. EUR 6,386 million in
2013, up +23.7%*. In Q4 14, it totalled EUR 1,860 million vs. EUR 1,291 million in Q4 13. This change can
be explained primarily by the effect of the revaluation of own financial liabilities, whose contribution was
very negative in 2013 and virtually nil in 2014, as well as the recording of non-recurring costs in Q4 13.
The businesses’ gross operating income came to EUR 8,537 million in 2014, generally stable (+0.5%*) vs.
2013. In Q4 14, it totalled EUR 1,930 million vs. EUR 1,788 million in Q4 13, up +14.2%*.
The Group’s net cost of risk amounted to EUR -2,967 million in 2014, down -25.2%* vs. 2013. In
particular, it included an additional EUR -400 million collective provision for litigation issues. This provision
amounted to EUR 1.1 billion at end-2014. In Q4 14, the net cost of risk was EUR -906 million, including
EUR -200 million in respect of the collective provision for litigation issues, substantially lower than in Q4 13
(EUR -1,045 million).
(1)
The Group’s commercial cost of risk (expressed as a fraction of outstanding loans) stood at 61
points in 2014 vs. 75 basis points in 2013, despite a still challenging economic environment.
basis
-
In French Retail Banking, the commercial cost of risk was lower at 56 basis points (vs. 66 basis
points in 2013). As in previous years, the fourth quarter was marked by an increase in the
commercial cost of risk related to a seasonal effect.
-
At 123 basis points (vs. 150 basis points in 2013), International Retail Banking & Financial
Services’ cost of risk was lower, with mixed trends according to geographical region. There was a
significant improvement in Europe, notably in Romania where it was down -42.6%* despite an
increase in the gross coverage ratio for doubtful outstandings to 71%. Conversely, in Russia, the
commercial cost of risk increased in conjunction with the deterioration in the macroeconomic
environment.
-
Global Banking & Investor Solutions’ cost of risk remained low in 2014 at 10 basis points (vs. 13
basis points in 2013), confirming the quality of the loan portfolio.
The gross doubtful outstandings ratio, excluding legacy assets, was 5.6% at end-December 2014 (vs. 6.0%
at end-December 2013). The Group’s gross coverage ratio for doubtful outstandings stood at 63%, up +2
points vs. 2013.
The Group’s operating income totalled EUR 4,578 million in 2014, vs. EUR 2,336 million in 2013 due to
the combined effect of a sharp decline in the net cost of risk and the impact of the revaluation of own
financial liabilities. In Q4 14, operating income amounted to EUR 954 million vs. EUR 246 million in Q4 13.
The businesses’ operating income was substantially higher in 2014 at EUR 5,973 million vs. EUR 5,143
million in 2013, mainly in conjunction with the decline in the net cost of risk. This trend was confirmed in Q4
14, with the businesses’ operating income amounting to EUR 1,225 million vs. EUR 745 million in Q4 13.
(1)
Annualised rate, excluding litigation issues and legacy assets in 2013, in respect of assets at the beginning of the
period and including operating leases.
5/27
Net income
After taking into account tax (the Group’s effective tax rate was 29.5% for 2014) and the contribution of
non-controlling interests, Group net income totalled EUR 2,692 million for 2014. In 2013, Group net income
was EUR 2,044 million, with an effective tax rate of 18.1%. In Q4 14, Group net income totalled EUR 511
million (vs. EUR 191 million in Q4 13), with an effective tax rate of 41.3% (it was 4.7% in Q4 13).
When corrected for non-economic items (revaluation of own financial liabilities and DVA), Group net
income amounted to EUR 2,759 million in 2014 (including EUR 460 million in Q4 14) vs. EUR 3,033 million
in 2013 (and EUR 451 million in Q4 13). This result includes notably EUR -525 million related to the
goodwill write-down on the Group’s activities in Russia and the consequences of the Group’s withdrawal
from consumer finance in Brazil for EUR -200 million, announced in February 2015.
(1)
When corrected for non-economic and non-recurring items in 2014, the Group’s ROE stood at 7.3% for
2014 (5.4% in absolute terms). It was 4.1% in absolute terms in 2013, and 7.8% excluding non-economic
and non-recurring items.
Earnings per share amounts to EUR 2.92 at end-December 2014, after deducting interest payable to
(2)
holders of deeply subordinated notes and undated subordinated notes . If the revaluation of own financial
liabilities and DVA are stripped out, earnings per share amounts to EUR 3.00, after deducting interest
(2)
payable to holders of deeply subordinated notes and undated subordinated notes .
(1)
(2)
Non-economic and non-recurring items detailed in methodology note No. 8 for 2013 and 2014.
The interest, net of tax effect, payable to holders of deeply subordinated notes and undated subordinated notes
amounts to respectively EUR 413 million and EUR 7 million for 2014; it is also necessary to reintegrate a buyback
capital loss amounting to EUR 6 million (see methodology note No. 3).
6/27
2 - THE GROUP’S FINANCIAL STRUCTURE
(1)
Group shareholders’ equity totalled EUR 55.2 billion at December 31st, 2014 and tangible net asset
value per share was EUR 51.43 (corresponding to net asset value per share of EUR 57.96, including
EUR 1.64 of unrealised capital gains).
The consolidated balance sheet totalled EUR 1,308 billion at December 31st, 2014 (EUR 1,214 billion at
December 31st, 2013, an amount adjusted in relation to the published financial statements, after the
retrospective implementation of IFRS 10 and 11). The net amount of customer loans, including lease
financing, was EUR 356 billion (EUR +11 billion vs. December 31st, 2013). At the same time, customer
deposits amounted to EUR 328 billion (EUR +14 billion vs. December 31st, 2013).
The Group’s funded balance sheet (see methodology note No. 7) totalled EUR 647 billion at endDecember 2014, slightly higher than at the end of 2013 (EUR +22 billion due to the integration of
Newedge), with a loan/deposit ratio of 98% (-8 points vs. December 31st, 2013). The Group completed its
medium/long-term financing programme for 2014 under satisfactory financial conditions (around 40 basis
points above the 6-month mid-swap benchmark index at December 31st, 2014) with an average maturity
(excluding subordinated debt) of 5.2 years. The Group’s liquid asset buffer (see methodology note No. 7)
totalled EUR 140 billion at December 31st, 2014 (vs. EUR 174 billion at December 31st, 2013), covering
168% of short-term financing requirements (including long-term debt arriving at maturity in less than one
year), vs. 145% at end-December 2013.
The Group’s risk-weighted assets amounted to EUR 353.2 billion at end-December 2014, vs. EUR 342.6
billion at end-December 2013 according to CRR/CRD4 rules. Risk-weighted assets in respect of credit risk
represent more than 80% of the total.
(2)
(3)
At December 31st, 2014, the Group’s Common Equity Tier 1 ratio stood at 10.1% . It was 10.0% at
December 31st, 2013. The Tier 1 ratio was 12.6%, up +89 basis points vs. end-2013. The Total Capital
ratio amounted to 14.3% at end-2014, up +89 basis points year-on-year. The Group’s substantial capital
generation (+103 basis points in 2014) helped finance the growth in risk-weighted assets, a reflection of the
Group’s business activity, changes in the Group’s business portfolio (notably the acquisitions in 2014), the
integration of new regulatory requirements and the increase in the collective provision for litigation issues,
while at the same time maintaining a significant margin for the remuneration of shareholders.
(2)
The leverage ratio stood at 3.8% , up +33 basis points vs. 2013, mainly due to the growth of the Group’s
Tier 1 capital.
The Group is rated by the rating agencies DBRS (long-term senior rating: AA(low) – negative outlook),
FitchRatings (long-term senior rating: A – negative outlook), Moody’s (long-term senior rating: A2 –
negative outlook) and Standard & Poor’s (long-term senior rating: A – negative outlook).
(1)
(2)
(3)
This figure includes notably EUR 9.7 billion of deeply subordinated notes and undated subordinated notes
All the solvency/leverage ratios published are calculated according to CRR/CRD4 rules, without the benefit of
transitional provisions (fully-loaded), unless indicated otherwise. They are presented pro forma for current earnings,
net of dividends, for the current financial year. 2013 data pro forma for applicable CRR/CRD4 rules. 2014 leverage
ratio including the provisions of the delegated act published in October 2014. See methodology note No. 5.
The phased-in ratio stood at 10.9% at December 31st, 2014, stable year-on-year.
7/27
3 - FRENCH RETAIL BANKING
In EUR m
2013
2014
Net banking income
8,437
8,275
Operating expenses
(5,358)
(5,356)
3,079
2,919
(1,258)
1,821
1,196
(1,041)
1,878
1,205
Gross operating income
Net cost of risk
Operating income
Group net income
Change
Q4 13
2014 vs.
2013
-1.9%
2,161
-1.1%(1)
-0.0%
(1,385)
-5.2%
-2.8%(1)
-17.3%
+3.1%
+0.8%
Q4 14
Change
Q4 vs. Q4
2,117
-2.0%
-1.0%(1)
+3.6%
(1,435)
776
682
(346)
430
286
(303)
379
241
-12.1%
-9.2%(1)
-12.5%
-11.8%
-15.6%
(1) Excluding PEL/CEL
Despite a challenging macroeconomic environment, French Retail Banking’s commercial activity proved
resilient and it continued with its innovation strategy aimed at serving its customers.
In terms of winning customers, French Retail Banking demonstrated the robustness of its franchises: the
number of net openings of current accounts for individual customers reached a record level in 2014
(+221,000 in 2014). It was higher for the three brands (Societe Generale, Credit du Nord and Boursorama),
with an increase of +30.3% overall compared with 2013. Boursorama exceeded the threshold of 600,000
customers in France, thus surpassing its 2014 target.
Outstanding balance sheet deposits rose +4.9% vs. 2013 to EUR 162.4 billion, driven by the good
performance for business customers. By type of savings vehicle, the growth was driven by sight deposit
inflow, which increased +7.2% vs. 2013. At the same time, gross life insurance production was up +9.0%,
with a unit-linked subscription rate in new production up by four points vs. 2013, at 14%.
French Retail Banking continued to assist both businesses and individuals with the financing of their
projects. However, in a restrictive economic environment, demand for investment loans remained relatively
sluggish. Outstanding loans were slightly lower than in 2013, at EUR 78.2 billion for commercial and
business customers (-2.7% vs. 2013) and EUR 96.1 billion for individuals (-1.1% vs. 2013). However,
corporate loan production was 0.5% higher than in 2013, whereas factoring and leasing production were up
+37.9% and +34.1% respectively vs. 2013.
The average loan/deposit ratio amounted to 108% in 2014 vs. 116% in 2013 and therefore improved by 8
points year-on-year.
French Retail Banking revenues were resilient, with net banking income of EUR 8,373 million, down -1.1%
vs. 2013, after neutralisation of the impact of PEL/CEL provisions. The interest margin was 0.4% higher
than in 2013 (excluding the PEL/CEL effect), with the increase in outstanding deposits and in loan margins
offsetting the decline in deposit reinvestment rates and in outstanding loans. Commissions were down
-3.1% over this same period, primarily due to the new capping of processing fees.
Operating expenses were stable vs. 2013, with the effect of cost savings plans offsetting a number of nonrecurring costs in Q4 14, while the net cost of risk was substantially lower (-17.3% vs. 2013). Accordingly,
operating income improved by +3.1% vs. 2013.
Overall, French Retail Banking made a solid contribution to Group net income of EUR 1,205 million, up
+0.8% vs. 2013, including EUR 241 million in Q4 14 (vs. EUR 286 million in Q4 13).
8/27
4 - INTERNATIONAL RETAIL BANKING & FINANCIAL SERVICES
The division’s revenues totalled EUR 7,456 million in 2014, up +1.5%* vs. 2013, while operating expenses
totalled EUR -4,279 million (+3.4%*) over the same period. Accordingly, gross operating income amounted
to EUR 3,177 million in 2014 (-1.0%*). The net cost of risk improved significantly to EUR -1,442 million in
2014, down -18.3%*, particularly in Romania. Overall, the division’s contribution to Group net income was
EUR 381 million in 2014. It was adversely affected by the goodwill write-down on Russian activities in Q1
14 amounting to EUR -525 million and the EUR -200 million non-recurring cost related to the decision to
withdraw from consumer finance in Brazil, included in the Q4 14 results. When restated for these items, the
division’s contribution amounted to EUR 1,106 million, up +12.5% vs. 2013 (EUR 983 million).
In Q4 14, the division posted revenues of EUR 1,849 million (-1.2%* vs. Q4 13), gross operating income of
EUR 757 million (-10.7%*) and a contribution to Group net income of EUR 51 million including the effect of
the withdrawal from consumer finance in Brazil.
In EUR m
2013
2014
Net banking income
On a like-for-like basis*
7,762
7,456
Operating expenses
(4,367)
On a like-for-like basis*
Gross operating income
On a like-for-like basis*
3,395
Net cost of risk
(1,835)
Operating income
1,560
On a like-for-like basis*
(4,279)
Change
2014 vs.
2013
-3.9%
+1.5%
Q4 13
Q4 14
Change
Q4 vs. Q4
1,990
1,849
-7.1%
-1.2%
(1,092)
-0.1%
+6.7%
-2.0%
(1,094)
+3.4%
3,177
-6.4%
-1.0%
897
757
-15.6%
-10.7%
(1,442)
1,735
-21.4%
+11.2%
+20.3%
(636)
260
(374)
383
-41.2%
+47.2%
+57.8%
4
(200)
n/s
Net profits or losses from other assets
On a like-for-like basis*
6
(198)
NM
Impairment losses on goodwill
0
(525)
NM
0
0
NM
983
381
-61.2%
203
51
-74.8%
Group net income
NM
NM
4.1 International Retail Banking
At end-December 2014, International Retail Banking’s outstanding loans posted a further increase
compared with 2013 (+1.5%*). They totalled EUR 77.1 billion with, in particular, a strong increase in the
Czech Republic, Germany and Sub-Saharan Africa. The growth in outstanding deposits was particularly
robust (+7.0%* vs. 2013) at EUR 70.9 billion, with very strong inflow in Central and Eastern European
countries and in Sub-Saharan Africa.
International Retail Banking’s revenues were stable (+0.2%* vs. 2013) at EUR 5,444 million. The business’
good performance in Western Europe, Central and Eastern Europe and Sub-Saharan Africa was offset by
declines in the Czech Republic and Romania. Operating expenses were higher than in 2013 (+3.3%*).
Gross operating income came to EUR 2,200 million, down -4.1%* vs. 2013. The contribution to Group net
income was a loss of EUR -274 million in 2014, which included the goodwill write-down on Russian
activities and the non-recurring cost related to the withdrawal from consumer finance in Brazil (vs. a
contribution to Group net income of EUR 388 million in 2013).
In Q4 14, International Retail Banking posted revenues of EUR 1,345 million, gross operating income of
EUR 525 million and a loss of EUR -106 million, including notably non-recurring items.
In Western Europe, where the Group has operations in France, Germany and Italy, mainly in consumer
finance, commercial activity was slightly higher (+1.1%*) in 2014 despite the backdrop of an economic
slowdown. Outstanding loans amounted to EUR 13.8 billion at end-2014. Revenues totalled EUR 663
9/27
million and gross operating income came to EUR 325 million in 2014. The contribution to Group net income
was EUR 66 million, up +28.7% vs. 2013.
In the Czech Republic, the robust commercial momentum was underpinned by the innovative efforts of
Komercni Banka (KB). These resulted in outstanding loans growing +4.4%* to EUR 18.2 billion vs. endDecember 2013 as well as an increase in the customer franchise (+37,000 customers in 2014). Despite
this positive volume effect, revenues were lower in 2014 (-2.3%*) at EUR 990 million given the continuing
low interest rate environment. Over the same period, operating expenses were kept under control at
EUR -498 million (-0.5%*) and the contribution to Group net income remained high at EUR 205 million in
2014 vs. EUR 223 million in 2013.
In Romania, where loan demand remained weak, the BRD Group’s outstanding loans were down -4.5%*
(at EUR 6.1 billion) vs. end-December 2013 while outstanding deposits were stable* at EUR 8.1 billion.
Revenues were down -8.0%* at EUR 538 million in 2014 due to the combined effect of lower volumes and
margin pressure. Rigorous cost control resulted in operating expenses declining -1.1%* to EUR -318
million. The BRD Group posted a lower net loss of EUR -27 million in 2014 (EUR -99 million in 2013), with
the significant improvement in the cost of risk over the period.
In Russia, in a market environment under pressure, the Group strengthened its balance sheet structure
thanks to proactive asset and liability management. Outstanding loans were down -1.7%* vs. end-2013 at
EUR 9.4 billion due to an increasingly selective approach in loan production. At the same time, the deposit
base was consolidated, with outstandings up +1.6%* vs. end-2013 at EUR 6.7 billion, exclusively on the
rouble component. The loan/deposit ratio continued to improve (99% at end-2014 vs. 115% at end-2013 on
Rosbank). The entities also posted robust levels of capital and liquidity at end-2014. Against this backdrop,
the financial performance was resilient in 2014. Net banking income declined by -0.8%* to EUR 1.1 billion
and costs were contained at EUR 0.8 billion, up +8.0%* vs. 2013, less than inflation. The contribution to
Group net income was a loss of EUR 538 million, after taking into account the total write-down of the
goodwill on Russian activities, compared with a contribution to Group net income of EUR 128 million in
(1)
2013. All in all, the SG Russia operation made a EUR 28 million contribution to Group net income in
2014, excluding the goodwill write-down.
In the other European countries, the Group strengthened its customer franchise (+105,000 customers vs.
2013 in the Balkans) and increased its deposit inflow in 2014 (outstandings up +13.3%* at EUR 10.2
billion). Outstanding loans were up +2.1%* in 2014 at EUR 10.9 billion. Revenues were up +2.3%* at
EUR 651 million, operating expenses were 1.8%* higher at EUR -446 million and the contribution to Group
net income came to EUR 67 million in 2014.
In the other regions where the Group operates, outstanding loans were higher in 2014 at EUR 18.8
billion (+2.6%*), with a very good commercial momentum in Africa (+16.3%*). Outstanding deposits were
up +8.2%*. Revenues came to EUR 1,514 million in 2014, higher than in 2013 (+4.1%*). Over the same
period, operating expenses rose +4.1%* in conjunction with commercial development. The contribution to
Group net income was a loss of EUR -47 million (EUR 118 million in 2013) given the EUR -200 million nonrecurring cost related to the withdrawal from consumer finance in Brazil. When restated for this item, the
contribution to Group net income amounted to EUR 153 million.
4.2 Insurance
The Insurance business maintained its commercial momentum in 2014. Life insurance savings
outstandings rose +7.0%* vs. end-December 2013 to EUR 90.2 billion and net inflow amounted to EUR 3.4
billion in 2014, substantially higher than in 2013 both in France and internationally. In terms of Protection
(Personal and Property/Casualty insurance), premiums were also higher than in 2013 (+2.7%*). The
business continued with its strategy to extend the product range as well as the intensification of penetration
rates among different distributors.
The Insurance business also posted a good financial performance in 2014, with net banking income up
+5.6%* vs. 2013 at EUR 786 million and a still low C/I ratio (38.3% in 2014). The business’ contribution to
Group net income was up +3.9%* year-on-year at EUR 329 million in 2014 and +1.4%* vs. Q4 13 at
EUR 84 million in Q4 14.
(1 )
SG Russia’s result: contribution of Rosbank, Delta Credit Bank, Rusfinance Bank, Societe Generale Insurance,
ALD Automotive and their consolidated subsidiaries to the businesses’ results.
10/27
4.3 Financial Services to Corporates
In 2014, Financial Services to Corporates maintained its commercial dynamism and posted a
contribution to Group net income of EUR 424 million, up +14.8%* vs. 2013.
At end-December 2014, Operational Vehicle Leasing and Fleet Management’s vehicle fleet had grown
+9.8% vs. end-December 2013, thereby strengthening its leadership positions at European level and
globally, where the business is ranked No. 2. This performance is underpinned notably by key partnerships
with car manufacturers and retail banking networks as well as the development of the activity in emerging
countries.
Equipment Finance maintained solid competitive positions (No. 1 in Europe) and enjoyed an increase in
new business (+18.0%* vs. 2013) to EUR 6.6 billion (excluding factoring). New business margins remained
satisfactory. At end-December 2014, outstanding loans totalled EUR 15.0 billion (excluding factoring), thus
enjoying a return to growth (+3.5%* vs. end-December 2013).
Financial Services to Corporates’ net banking income rose +7.3%* to EUR 1,377 million in 2014.
Operating expenses were higher over the period, respectively at EUR 716 million (vs. EUR 676 million in
2013). Operating income came to EUR 573 million, an increase of +12.0%* vs. 2013.
In Q4 14, Financial Services to Corporates’ revenues amounted to EUR 344 million (-1.3%* vs. Q4 13) and
operating expenses came to EUR 186 million (+6.4%* vs. Q4 13). The contribution to Group net income
amounted to EUR 107 million in Q4 14 (vs. EUR 111 million in Q4 13).
11/27
5 - GLOBAL BANKING & INVESTOR SOLUTIONS
In EUR m
2013
2014
Net banking income
On a like-for-like basis*
8,382
8,726
Operating expenses
(6,073)
On a like-for-like basis*
(6,285)
Change
2014 vs.
2013
+4.1%
-0.7%
Q4 13
Q4 14
Change
Q4 vs. Q4
1,947
2,189
+12.5%
+6.0%
(1,698)
-7.3%
-15.1%
x4.3
x 7,4
+3.5%
(1,831)
-4.4%
Gross operating income
On a like-for-like basis*
2,308
2,441
+5.8%
+10.4%
115
491
Net cost of risk
(546)
(81)
-85.2%
(60)
(28)
Operating income
On a like-for-like basis*
1,762
2,360
+33.9%
+40.8%
55
463
x8.4
x 64,8
Group net income
1,206
1,918
+59.1%
(184)
407
NM
-53.5%
Global Banking & Investor Solutions posted revenues of EUR 8,726 million in 2014, up +4.1%, notably
following the integration of Newedge. When adjusted for changes in Group structure and at constant
exchange rates, revenues were slightly lower (-0.7%*) than in 2013, due to the decline in Global Markets
and despite the strong rebound in Financing & Advisory and the good performance of the other businesses.
Global Markets
2014 was marked by the instability of the markets, further declines in interest rates and risk aversion,
resulting in low volatility and volumes. Against this backdrop, Global Markets’ revenues amounted to EUR
4,621 million in 2014, down -5.1% vs. 2013 and -3.1% when restated for a gain on recovery on a claim in
2013 (-6.8% excluding CVA/DVA impacts).
Societe Generale was named “Derivatives House of the Year” by Risk magazine. This illustrates the
consistency of its client strategy and its constant ability to innovate in investment and risk management
solutions based on derivatives, and in a constantly evolving market.
•
Equity activities’ revenues amounted to EUR 2,379 million in 2014, down -5.5% vs. 2013 and -1.7%
excluding the gain on recovery on a claim in 2013 (-5.2% when restated for CVA/DVA impacts). After a
buoyant start to the year, followed by two quarters adversely affected by low volatility and volumes,
there was a sharp rebound in activity in Q4 14 (+6.7% vs. Q4 13). This was the best quarter for 4
years. Despite an unfavourable environment, equity derivative activities nevertheless proved their
robustness in 2014, with a limited decline in their revenues. The Group also confirmed its positions in
cash equity (increase in market share to 9.2% in Q4 14 based on SG Euronext Global volumes) and
listed products (No. 1 with an 11.9% market share in warrants in 2014). The revenues generated on
structured products remained solid, driven by growing client activity.
•
At EUR 2,242 million, Fixed Income, Currencies & Commodities posted revenues down -4.6% in
2014 vs. 2013 (-8.5% when restated for CVA/DVA impacts), in constantly evolving markets marked by
declining rates and changes in monetary policy. The excellent performance of emerging market
activities and the growth in forex and commodity revenues helped offset the decline in revenues
recorded for rate and credit activities. Structured products reported good revenues, confirming the
solidity of the client franchise.
12/27
Financing & Advisory
Financing & Advisory turned in a good performance in 2014, with revenues of EUR 2,020 million, up
+12.4%. The increase is still substantial (+8.8%) when restated for CVA/DVA impacts and a loss on a tax
litigation issue in 2013.
All the businesses made a positive contribution to this performance: capital market activities exhibited the
strongest revenue growth, natural resources financing enjoyed an excellent year with a marked increase in
Q4 14 despite the decline in commodity prices, and structured financing revenues were higher. The
business’ expertise was once again recognised with the award of “Best Global Export Finance Bank” (GTR
Leaders in Trade Awards 2014, January 2015).
Asset and Wealth Management
The revenues of the Asset and Wealth Management business line totalled EUR 1,038 million in 2014,
down -3.2% in absolute terms vs. 2013, and up +2.5%* when adjusted for changes in Group structure and
at constant exchange rates.
Private Banking’s assets under management totalled EUR 108 billion at end-December including the
assets under management of the new Private Banking model in France launched at the beginning of the
year.
The inflow of EUR +4.2 billion in 2014 has already partially offset the sale of Private Banking activities in
Asia, illustrating the accelerated development of its core markets in Europe.
Strengthening synergies within the Group was also a priority in 2014: in France, with the evolution of the
relationship model, internationally with the launch of a new Private Banking offering in Croatia and at the
same time, the increased cooperation with Global Markets for the development of new products adapted to
the specific needs of certain clients.
Private
Banking posted net banking income of
EUR 815 million in 2014,
+2.1%* vs. 2013. The gross margin remained at a high level of 107 basis points (excluding Asia).
up
Lyxor’s assets under management amounted to EUR 83.6 billion, underpinned by good inflow on ETFs, a
segment in which Lyxor retains a No. 3 ranking in Europe. Lyxor’s revenues totalled EUR 202 million in
2014, up +8.5%* vs. 2013.
Securities Services and Brokerage
Securities Services’ assets under custody increased +8.7% to EUR 3,854 billion vs. December 2013
while assets under administration rose +11.1% to EUR 549 billion over the same period, confirming its
European No. 2 ranking.
At EUR 659 million, Securities Services’ revenues were up +2.6% vs. 2013, with the increase in
commissions offsetting the negative impact of the continued decline in interest rates.
Newedge’s Brokerage activity pursued its transformation and its integration with Global Markets.
Revenues were down -10.4%* in 2014 vs. 2013, albeit with a rebound in activity in Q4 14 (+40.9%* vs. Q4
13) in a buoyant market, where synergies are starting to bear fruit. Accordingly, more than 250 new clients
have entered into a relationship with the Group thanks to the implementation of an integrated offering.
Operating expenses
Global Banking & Investor Solutions’ operating expenses fell -4.4%* vs. 2013. When restated for the impact
of the Euribor fine paid in 2013, expenses were up +2.4%*, reflecting the businesses’ ongoing investment
and development programme, and good cost control in Securities Services and Brokerage (-4.4%* vs.
2013).
13/27
Operating income
Gross operating income amounted to EUR 2,441 million in 2014, up +10.4%* vs. 2013.
The net cost of risk remained low at EUR -81 million in 2014, reflecting the quality of the portfolios.
The division’s operating income totalled EUR 2,360 million in 2014, a sharp increase of +40.8%* vs. 2013.
Net income
The division’s contribution to Group net income came to EUR 1,918 million in 2014, a substantial increase
of +59.1%. When adjusted for changes in Group structure and at constant exchange rates, the increase
remained strong (+48.1%* vs. 2013). There was further confirmation of the robustness and resilience of the
business model adapted to the new regulatory environment. ROE stood at 14.7% in 2014 (vs. 8.2% in
2013).
The division’s revenues came to EUR 2,189 million in Q4 14 (+6.0%* vs. Q4 13). Operating expenses were
down -15.1%* and the contribution to Group net income amounted to EUR 407 million (vs. a loss of
EUR -184 million in Q4 13, due to the impact of a transaction with the European Union which reduced the
result by EUR -446 million).
14/27
6 - CORPORATE CENTRE
In EUR m
2013
2014
Change
2014 vs.
2013
+58.3%
+58.3%
Q4 13
Q4 14
Change
Q4 vs. Q4
(402)
(32)
+92.0%
+92.0%
Net banking income
(2,147)
On a like-for-like basis*
(896)
Operating expenses
On a like-for-like basis*
(96)
-61.4%
-61.4%
(95)
(38)
-59.9%
-59.9%
Gross operating income
(2,396)
On a like-for-like basis*
(992)
+58.6%
+58.6%
(497)
(70)
+85.9%
+85.9%
Net cost of risk
(403)
(2)
(201)
+50.3%
+50.3%
(499)
(271)
+45.7%
+45.7%
+39.4%
(113)
(188)
-66.8%
(249)
(411)
Operating income
(2,807)
On a like-for-like basis*
Group net income
(1,341)
(1,395)
(812)
-1.9%
x90.1
The Corporate Centre includes:
- the property management of the Group’s head office,
- the Group’s equity portfolio,
- the Treasury function for the Group, certain costs related to cross-functional projects and certain costs
incurred by the Group and not reinvoiced.
The Corporate Centre’s revenues totalled EUR -32 million in Q4 14 (vs. EUR -402 million in Q4 13). They
include in particular the revaluation of the Group’s own financial liabilities amounting to EUR +44 million
(vs. the total impact in Q4 13 of EUR -379 million). The effect of the revaluation of own financial liabilities
amounted to EUR -139 million in 2014, vs. EUR -1,594 million in 2013.
Operating expenses amounted to EUR -38 million in Q4 14, vs. EUR -95 million in Q4 13. They amounted
to EUR -96 million in 2014 vs. EUR -249 million in 2013.
Gross operating income was EUR -70 million in Q4 14. When restated for the revaluation of own financial
liabilities (see methodology note No. 8), it amounted to EUR -114 million (vs. EUR -118 million in Q4 13).
When adjusted for the revaluation of own financial liabilities, gross operating income amounted to
EUR -853 million in 2014 vs. EUR -802 million in 2013.
The net cost of risk was EUR -201 million in Q4 14. It included an additional collective provision for litigation
issues amounting to EUR -200 million, taking the stock of collective provisions for litigation issues to
EUR 1.1 billion. The net cost of risk amounted to EUR -403 million in 2014, including EUR -400 million of
additional collective provisions for litigation issues.
The Corporate Centre’s contribution to Group net income was a loss of EUR -188 million in Q4 14, vs.
EUR -113 million in Q4 13. When restated for the revaluation of own financial liabilities (see methodology
note No. 8), it amounted to EUR -217 million (vs. EUR +136 million in Q4 13).
The Corporate Centre’s contribution to Group net income totalled EUR -812 million in 2014 (EUR -1,341
million in 2013), or EUR -721 million net of the effect of the revaluation of own financial liabilities (EUR -296
million in 2013 which included notably the effect of the disposal of the Egyptian subsidiary NSGB for
EUR +417 million).
15/27
7 - CONCLUSION
In a particularly uncertain and volatile economic environment in 2014, the Group’s businesses confirmed
their good operating performance and Societe Generale pursued its transformation. The development
plans announced during Investor Day are being implemented and are starting to bear fruit, against a
backdrop of rigorously controlled costs and the optimisation of resources.
The Group intends to pursue the rollout of its strategic plan in 2015, while maintaining rigorous
management of capital allocation. It will pay particular attention to growth in net banking income, the
optimisation of its operations in Russia and the control of its operating expenses and risks.
It is with this aim that the Group will pursue its capital allocation and resource optimisation policy. The
Board of Directors will propose distributing a dividend of EUR 1.20 per share to the Annual General
Meeting, corresponding to 40% of Group net income**, in accordance with commitments made.
8 - 2014/2015 FINANCIAL CALENDAR
2014/2015 financial communication calendar
February 12th, 2015
May 6th, 2015
May 19th, 2015
May 26th, 2015
May 28th, 2015
August 5th, 2015
November 5th, 2015
Publication of fourth quarter and FY 2014 results
Publication of first quarter 2015 results
Annual General Meeting
Detachment of the dividend
Payment of the dividend
Publication of second quarter and first half 2015 results
Publication of third quarter and nine months 2015 results
This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.
These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting
principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the
application of existing prudential regulations.
These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a
given competitive and regulatory environment. The Group may be unable to:
- anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;
- evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided
in this document and the related presentation.
Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are
subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and
there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could
cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in
general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe
Generale’s strategic, operating and financial initiatives.
More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the Registration Document
filed with the French Autorité des Marchés Financiers.
Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the
information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any
obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings
and market positions are internal.
16/27
9 - APPENDIX 1: FINANCIAL DATA: 2013 data adjusted following the
retrospective implementation of IFRS 10 and 11 on January 1st, 2014
CONSOLIDATED INCOME STATEMENT
(in EUR millions)
2013
Net banking income
Operating expenses
2014
Change
2014 vs. 2013
Q4 13
Q4 14
Change
Q4 vs. Q4
22,433
23,561
+5.0%
+5.0%*
5,696
6,123
+7.5%
+7.5%*
(16,047)
(16,016)
-0.2%
-1.9%*
(4,405)
(4,263)
-3.2%
-5.3%*
6,386
7,545
+18.1%
+23.7%*
1,291
1,860
+44.1%
+55.9%*
(4,050)
(2,967)
-26.7%
-25.2%*
(1,045)
(906)
-13.3%
-10.5%*
2,336
4,578
+96.0%
x 2,1
246
954
x3.9
x 5,3
575
109
-81.0%
134
(84)
NM
61
213
x3.5
(80)
72
NM
Impairment losses on goodwill
(50)
(525)
NM
(50)
0
Income tax
Net income
(528)
(1,384)
x2.6
(18)
(359)
+100.0
%
x20.0
2,394
2,991
+24.9%
232
583
x2.5
350
299
-14.6%
41
72
+75.6%
+31.7%
191
511
x2.7
Gross operating income
Net cost of risk
Operating income
Net profits or losses from other assets
Net income from companies accounted for
by the equity method
O.w. non controlling interests
Group net income
2,044
2,692
Tier 1 ratio at end of period
11.8%
12.6%
+30.8%*
+78.5%*
* When adjusted for changes in Group structure and at constant exchange
rates
NET INCOME AFTER TAX BY CORE BUSINESS
(in EUR millions)
2013
2014
Change
2014 vs. 2013
Q4 13
Q4 14
Change
Q4 vs.
Q4
French Retail Banking
International Retail Banking & Financial Services
1,196
983
1,205
381
+0.8%
-61.2%
286
203
241
51
-15.6%
-74.8%
Global Banking and Investor Solutions
1,206
1,918
+59.1%
(184)
407
NM
CORE BUSINESSES
Corporate Centre
GROUP
3,385
3,504
+3.5%
304
699
x2.3
(1,341)
(812)
+39.4%
(113)
(188)
-66.8%
2,044
2,692
+31.7%
191
511
x2.7
17/27
CONSOLIDATED BALANCE SHEET
Assets (in billions of euros)
Cash, due from central banks
Financial assets measured at fair value through profit and loss
Hedging derivatives
Available-for-sale financial assets
31 December 2014 31 December 2013*
% change
57.1
66.6
-14%
530.5
479.1
+11%
19.4
11.5
+69%
143.7
130.2
+10%
Due from banks
80.7
75.4
+7%
Customer loans
344.4
332.7
+4%
Lease financing and similar agreements
26.0
27.7
-6%
Revaluation differences on portfolios hedged against interest rate risk
3.4
3.0
+12%
Held-to-maturity financial assets
4.4
1.0
x 4,4
Tax assets
7.4
7.3
+2%
65.2
54.2
+20%
Non-current assets held for sale
0.9
0.1
x 8,7
Investments in subsidiaries and affiliates accounted for by equity
method
Tangible and intangible fixed assets
2.8
2.8
-0%
17.9
17.6
+2%
4.3
5.0
-13%
1,308.2
1,214.2
8%
31 December 2014
31 December
2013*
% change
4.6
3.6
+28%
480.3
425.8
+13%
10.9
9.8
+11%
Other assets
Goodwill
Total
Liabilities (in billions of euros)
Due to central banks
Financial liabilities measured at fair value through profit and loss
Hedging derivatives
Due to banks
91.3
86.8
+5%
Customer deposits
349.7
334.2
+5%
Securitised debt payables
108.7
138.4
-21%
10.2
3.7
x 2,7
1.4
1.6
-12%
75.1
53.5
+40%
Revaluation differences on portfolios hedged against interest rate risk
Tax liabilities
Other liabilities
Non-current liabilities held for sale
0.5
0.0
NM
103.3
91.5
+13%
Provisions
4.5
3.8
+18%
Subordinated debt
8.8
7.5
+18%
55.2
50.9
+8%
3.6
3.1
+18%
1,308.2
1,214.2
8%
Underwriting reserves of insurance companies
Shareholders' equity
Non controlling Interests
Total
* Amounts restated in relation to the financial statements published in 2013, following the retrospective implementation
of IFRS 10 and 11.
18/27
10 - APPENDIX 2: METHODOLOGY
1- The Group’s consolidated results as at December 31st, 2014 were examined by the Board of
Directors on February 11th, 2015.
The financial information presented in respect of the 2014 financial year has been prepared in accordance
with IFRS as adopted in the European Union and applicable at that date, and have not been audited. The
audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in
progress.
Note that the data for the 2013 financial year have been restated due to the implementation of IFRS 10 and
11, resulting in the publication of adjusted data for the previous financial year.
For financial communication purposes, data relating to the subsidiary Lyxor were reclassified in 2013 within
the Global Banking & Investor Solutions division in Asset and Wealth Management, this change only
actually taking effect at the beginning of 2014.
2- Group ROE is calculated on the basis of average Group shareholders’ equity under IFRS excluding
(i) unrealised or deferred capital gains or losses booked directly under shareholders' equity excluding
conversion reserves, (ii) deeply subordinated notes, (iii) undated subordinated notes recognised as
shareholders’ equity (“restated”), and deducting (iv) interest payable to holders of deeply subordinated
notes and of the restated, undated subordinated notes. The net income used to calculate ROE is based on
Group net income excluding interest, net of tax impact, to be paid to holders of deeply subordinated notes
for the period and, since 2006, holders of deeply subordinated notes and restated, undated subordinated
notes (see below).
As from January 1st, 2014, the allocation of capital to the different businesses is based on 10% of riskweighted assets at the beginning of the period, vs. 9% previously. The published quarterly data related to
allocated capital have been adjusted accordingly. At the same time, the normative capital remuneration
rate has been adjusted for a neutral combined effect on the businesses’ historical revenues.
3- For the calculation of earnings per share, “Group net income for the period” is corrected (reduced in the
case of a profit and increased in the case of a loss) for capital gains/losses recorded on partial buybacks
(i.e. a capital loss of EUR 6 million in 2014) and interest, net of tax impact, to be paid to holders of:
(i) deeply subordinated notes (EUR -119 million in respect of Q4 14 and EUR -413 million for
2014),
(ii) undated subordinated notes recognised as shareholders’ equity (EUR -2 million in respect of
Q4 14 and EUR -7 million in 2014).
Earnings per share is therefore calculated as the ratio of corrected Group net income for the period to the
average number of ordinary shares outstanding, excluding own shares and treasury shares but including
(a) trading shares held by the Group and (b) shares held under the liquidity contract.
4- Net assets are comprised of Group shareholders’ equity, excluding (i) deeply subordinated notes
(EUR 9.4 billion), undated subordinated notes previously recognised as debt (EUR 0.3 billion) and (ii)
interest payable to holders of deeply subordinated notes and undated subordinated notes, but reinstating
the book value of trading shares held by the Group and shares held under the liquidity contract. Tangible
net assets are corrected for net goodwill in the assets and goodwill under the equity method. In order to
calculate Net Asset Value Per Share or Tangible Net Asset Value Per Share, the number of shares used to
calculate book value per share is the number of shares issued at December 31st, 2014, excluding own
shares and treasury shares but including (a) trading shares held by the Group and (b) shares held under
the liquidity contract.
5- The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with
applicable CRR/CRD4 rules. The solvency ratios are presented pro forma for current earnings, net of
dividends, for the current financial year, unless specified otherwise.
6- The Group’s ROTE is calculated on the basis of tangible capital, i.e. excluding cumulative average book
capital (Group share), average net goodwill in the assets and underlying average goodwill relating to
shareholdings in companies accounted for by the equity method. The net income used to calculate ROTE
is based on Group net income excluding interest, interest net of tax on deeply subordinated notes for the
19/27
period (including issuance fees paid, for the period, to external parties and the discount charge related to
the issue premium for deeply subordinated notes) and interest net of tax on undated subordinated notes
recognised as shareholders’ equity for the current period (including issuance fees paid, for the period, to
external parties and the discount charge related to the issue premium for undated subordinated notes).
7- Funded balance sheet, loan/deposit ratio, liquidity reserve
The funded balance sheet gives a representation of the Group’s balance sheet excluding the contribution
of insurance subsidiaries and after netting derivatives, repurchase agreements and accruals.
At December 31st, 2014, the IFRS balance sheet excluding the assets and liabilities of insurance
subsidiaries, after netting repurchase agreements and securities lending/borrowing, derivatives and
accruals, has been restated to include:
a) the reclassification under customer deposits of SG Euro CT outstandings (included in customer
repurchase agreements), as well as the share of issues placed by French Retail Banking networks
(recorded in medium/long-term financing), and certain transactions carried out with counterparties
equivalent to customer deposits (previously included in short-term financing). However, certain
transactions equivalent to market resources are deducted from customer deposits and reintegrated in
short-term financing. The net amount of transfers from
- medium/long-term financing to customer deposits amounted to EUR 7bn at December 31st, 2013
and EUR 14bn at December 31st, 2014
- short-term financing to customer deposits amounted to EUR 11bn at December 31st, 2013 and
EUR 27bn at December 31st, 2014
- repurchase agreements to customer deposits amounted to EUR 3bn at December 31st, 2013 and
EUR 2bn at December 31st, 2014
b) The balance of financing transactions has been allocated to medium/long-term resources and shortterm resources based on the maturity of outstandings (more or less than one year). The initial maturity
of debts has been used for debts represented by a security.
c) In assets, the item “customer loans” includes outstanding loans with customers, net of provisions and
write-downs, including net lease financing outstandings and transactions at fair value through profit and
loss, and excludes financial assets reclassified under loans and receivables in 2008 in accordance with
the conditions stipulated by the amendments to IAS 39. These positions have been reclassified in their
original lines.
d) The accounting item “due to central banks” in liabilities has been offset against the item “net central
bank deposits” in assets.
The Group’s loan/deposit ratio is calculated as the ratio between customer loans and customer deposits
after the adjustments defined above.
The liquid asset buffer or liquidity reserve includes
a)
central bank cash and deposits recognised for the calculation of the liquidity buffer for the LCR
ratio.
b)
liquid assets rapidly tradable in the market (High Quality Liquid Assets or HQLA), unencumbered
net of haircuts, as included in the liquidity buffer for the LCR ratio.
c)
central bank eligible assets, unencumbered net of haircuts.
20/27
At December 31st, 2014, the funded balance sheet was as follows:
In EUR bn
ASSETS
Net central bank deposits
Interbank loans
Client related trading assets
Securities
LIABILITIES
DEC. 14
54
34
86
68
DEC. 14
58
369
35
647
377
56
647
19
136
25
Customer loans
Long term assets
Total assets
Short term issuance
Other
Medium/Long term resources
o.w. LT debt with a remaining maturity below 1 year
Customer deposits
Equity
Total liabilities
As a reminder, at December 31st, 2013, the funded balance sheet, adjusted for the effects of the
retrospective implementation of IFRS 10 and 11 was as follows:
In EUR bn
Net Central bank deposits
Interbank loans
Client related trading assets
Securities
ASSETS
LIABILITIES
DEC. 13
63
31
80
59
DEC. 13
96
357
35
625
338
52
625
1
138
24
Customer loans
Long term assets
Total assets
Short term issuance
Other
Medium/Long term resources
o.w. LT debt with a remaining maturity below 1 year
Customer deposits
Equity
Total liabilities
The Group’s loan/deposit ratio is calculated as the ratio between customer loans and customer deposits
defined accordingly, or 98% at December 31st, 2014 and 106% at December 31st, 2013.
The liquid asset buffer or liquidity reserve includes
d)
central bank cash and deposits recognised for the calculation of the liquidity buffer for the LCR
ratio.
e)
liquid assets rapidly tradable in the market (High Quality Liquid Assets or HQLA), unencumbered
net of haircuts, as included in the liquidity buffer for the LCR ratio.
f)
central bank eligible assets, unencumbered net of haircuts. Central bank cash balances, excluding
mandatory reserves.
The implementation of IFRS 10 and 11 resulted in no variation in the liquidity reserve in respect of 2013. In
Q4 14, the liquidity reserve included EUR 48 billion in respect of central bank deposits, EUR 75 billion of
HQLA securities and EUR 24 billion of central bank eligible assets (respectively EUR 60 billion, EUR 78
billion and EUR 35 billion in Q4 13).
21/27
8 – Non-economic items and restatements
Non-economic items correspond to the revaluation of own financial liabilities and DVA. Details of these
items, and other items that are restated, are given below for 2013 and 2014.
Note that the data concerning CVA are communicated for information only; they are not restated at Group
level.
2013
Net
banking
income
(1,594)
Revaluation of own
(1)
financial liabilities
Accounting impact of
85
(1)
DVA
Accounting impact of
(208)
CVA
Provision for disputes
Capital gain on NSGB
disposal
Adjustment on TCW
disposal
Impairment & capital
losses
Capital gain on disposal of Private
banking subsidiary
Capital gain on Piraeus
33
stake disposal
Impairment & capital
losses
Impairment & capital
losses
Impact of transaction with European
Commission
Legacy assets
150
TOTAL
Operating
expenses
Cost of
risk
Revaluation of own
(1)
financial liabilities
Accounting impact of
(1)
DVA
Accounting impact of
CVA
Provision for disputes
Net
banking
income
(139)
Group
(136)
Group
417
(400)
377
Corporate Centre
Corporate Centre
24
21
Corporate Centre
(8)
(8)
Corporate Centre
166
126
Corporate Centre
21
Corporate Centre
(50)
(50)
(131)
(131)
(446)
(446)
(64)
(382)
Others
Cost of
risk
Global Banking and
Investor Solutions
Global Banking and
Investor Solutions
Global Banking and
Investor Solutions
Global Banking and
Investor Solutions
Group
Group net income
(91)
Corporate Centre
38
25
Group
(7)
(5)
Group
(400)
(12)
Impact withdrawal from consumer
finance activity in Brazil
TOTAL
(210)
(1,825)
Operating
expenses
Corporate Centre
56
(400)
Badwill Newedge
Capital gain on disposal
of Private banking
subsidiary
Impairment & capital
losses
Group net income
(1,045)
(1,534)
2014
(1)
Others
(120)
(25)
(400)
Corporate Centre
194
194
Corporate Centre
141
102
Corporate Centre
(525)
(525)
(200)
(200)
(900)
International Retail
Banking and Financial
Services
International Retail
Banking and Financial
Services
Group
Non-economic items
22/27
Similarly, data relating to Q4 13 and Q4 14 are given below:
Q4 13
Revaluation of own
(1)
financial liabilities
Net banking
income
Operating
expenses
Others
Cost of
risk
Group net income
(379)
(249)
Corporate Centre
Accounting impact of
(18)
(1)
DVA
Accounting impact of
92
CVA
Capital gain on disposal of Private
banking subsidiary
(12)
Group
60
Group
166
126
Corporate Centre
(50)
(50)
Corporate Centre
(131)
(131)
Global Banking and
Investor Solutions
Global Banking and
Investor Solutions
Impairment & capital
losses
Impairment & capital
losses
Impact of transaction with European
Commission
Legacy assets
16
TOTAL
(446)
(13)
(62)
(289)
Q4 14
Revaluation of own
(1)
financial liabilities
Net
banking
income
TOTAL
Operating Others
expenses
Cost
of risk
44
Accounting impact
33
(1)
of DVA
Accounting impact
(63)
of CVA
Provision for
disputes
Capital gain on
(12)
disposal of Private
banking subsidiary
Badwill Newedge
Impact withdrawal from
consumer finance activity in
Brazil
(1)
(446)
2
Global Banking and
Investor Solutions
(742)
Group
Group net income
29
Corporate Centre
22
Group
(41)
Group
(200)
Corporate Centre
141
102
Corporate Centre
(16)
(200)
(16)
(200)
Corporate Centre
International
Retail Banking
and Financial
Services
(305)
Group
(200)
(25)
(41)
Non-economic items
NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported
due to rounding rules.
(2) All the information on the results for the period (notably: press release, downloadable data, presentation
slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the
“Investor” section.
23/27
11 - QUARTERLY SERIES
(in millions of euros)
Q1 13
Q2 13
Q3 13
Q4 13
2013
Q1 14
Q2 14
Q3 14
Q4 14
2014
French Retail Banking
Net banking income
2,070
2,119
2,086
2,161
8,437
2,073
2,066
2,019
2,117
8,275
Operating expenses
-1,335
-1,322
-1,316
-1,385
-5,358
-1,329
-1,288
-1,304
-1,435
-5,356
735
798
770
776
3,079
744
778
715
682
2,919
-323
-295
-293
-346
-1,258
-232
-269
-237
-303
-1,041
412
502
477
430
1,821
512
509
478
379
1,878
-1
0
0
2
2
-5
1
-6
-11
-21
8
10
9
11
37
10
12
13
10
45
-148
-181
-171
-156
-656
-193
-194
-179
-138
-704
271
331
314
287
1,203
324
328
306
240
1,198
4
1
0
2
7
1
-8
1
-1
-7
267
329
314
286
1,196
323
336
305
241
1,205
Average allocated capital
9,649
9,648
9,575
9,626
9,625
10,185
10,143
9,909
9,616
9,963
(in millions of euros)
Q1 13
Q2 13
Q3 13
Q4 13
2013
Q1 14
Q2 14
Q3 14
Q4 14
2014
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Income tax
Net income
O.w. non controlling interests
Group net income
International Retail Banking & Financial Services
Net banking income
1,932
1,929
1,911
1,990
7,762
1,818
1,889
1,900
1,849
7,456
Operating expenses
-1,113
-1,095
-1,065
-1,094
-4,367
-1,057
-1,062
-1,068
-1,092
-4,279
Gross operating income
Net cost of risk
Operating income
819
834
845
897
3,395
761
827
832
757
3,177
-406
-409
-383
-636
-1,835
-378
-312
-378
-374
-1,442
413
425
462
260
1,560
383
515
454
383
1,735
Net income from other assets
3
-1
0
4
6
3
0
-1
-200
-198
Net income from companies accounted for by the
equity method
9
6
6
10
31
8
10
13
19
50
Impairment losses on goodwill
0
0
0
0
0
-525
0
0
0
-525
Income tax
-113
-116
-128
-81
-438
-106
-138
-122
-101
-467
Net income
312
314
340
194
1,160
-237
387
344
101
595
56
72
58
-9
177
47
69
48
50
214
O.w. non controlling interests
Group net income
Average allocated capital
256
242
282
203
983
-284
318
296
51
381
10,938
10,510
10,380
10,220
10,512
10,141
10,011
10,269
10,344
10,190
24/27
(in millions of euros)
o.w. International Retail Banking
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the equity
method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Financial Services to Corporates and Insurance
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the equity
method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Insurance
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the equity
method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Financial Services to Corporates
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the equity
method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. other
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the equity
method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
Q1 13
Q2 13
Q3 13
Q4 13
2013
Q1 14
Q2 14
Q3 14
Q4 14
2014
1,478
-869
610
-377
233
3
3
1,450
-846
604
-378
226
0
2
1,418
-823
594
-356
239
0
3
1,490
-842
648
-629
18
5
2
5,836
-3,380
2,456
-1,740
716
7
9
1,332
-805
527
-367
160
3
4
1,376
-811
565
-291
274
0
3
1,391
-808
583
-355
228
-1
4
1,345
-820
525
-342
183
-200
3
5,444
-3,244
2,200
-1,355
845
-198
14
0
-57
182
57
125
7,118
0
-54
174
65
108
6,655
0
-57
184
62
122
6,543
0
-6
19
-14
33
6,420
0
-174
558
170
388
6,684
-525
-38
-396
47
-443
6,537
0
-63
214
70
144
6,495
0
-52
179
48
131
6,637
0
-41
-55
51
-106
6,589
-525
-194
-58
216
-274
6,563
479
-232
247
-24
223
0
6
499
-237
262
-25
237
-1
5
520
-238
282
-28
254
0
3
543
-248
296
-26
270
0
10
2,042
-956
1,086
-103
983
-1
25
526
-245
281
-21
260
0
5
546
-252
294
-20
274
0
6
546
-257
289
-23
266
0
10
545
-263
282
-24
258
0
16
2,163
-1,017
1,146
-88
1,058
0
37
0
-71
158
2
157
3,612
0
-75
166
2
164
3,639
0
-81
176
2
175
3,624
0
-84
196
2
194
3,613
0
-311
696
7
689
3,622
0
-82
183
2
181
3,457
0
-88
192
1
191
3,398
0
-84
192
2
190
3,522
0
-82
192
1
191
3,650
0
-336
759
6
753
3,507
182
-67
116
0
116
0
0
185
-69
116
0
116
0
0
187
-71
116
0
116
0
0
195
-72
123
0
123
0
0
750
-280
470
0
470
0
0
192
-73
119
0
119
0
0
195
-73
122
0
122
0
0
198
-78
120
0
120
0
0
201
-77
124
0
124
0
0
786
-301
485
0
485
0
0
0
-37
79
0
78
1,455
0
-37
79
0
78
1,491
0
-37
79
0
78
1,502
0
-39
84
1
83
1,517
0
-150
320
2
318
1,491
0
-38
81
0
81
1,529
0
-39
83
1
82
1,533
0
-38
82
0
82
1,587
0
-40
84
0
84
1,614
0
-155
330
1
329
1,566
297
-166
131
-24
107
0
6
314
-168
146
-25
121
-1
5
332
-167
166
-28
138
0
3
348
-175
173
-26
147
0
10
1,292
-676
616
-103
513
-1
25
334
-172
162
-21
141
0
5
351
-179
172
-20
152
0
6
348
-179
169
-23
146
0
10
344
-186
158
-24
134
0
16
1,377
-716
661
-88
573
0
37
0
-34
80
1
78
2,157
0
-38
87
1
86
2,149
0
-44
98
1
96
2,122
0
-46
112
1
111
2,096
0
-161
376
5
371
2,131
0
-44
102
2
100
1,928
0
-49
109
0
109
1,866
0
-46
110
2
108
1,935
0
-42
108
1
107
2,037
0
-181
429
5
424
1,941
-26
-11
-37
-5
-42
0
0
-20
-12
-32
-6
-38
0
-1
-27
-4
-31
1
-30
0
0
-43
-4
-47
19
-28
0
-2
-116
-31
-147
8
-139
0
-3
-40
-7
-47
10
-37
0
-1
-33
1
-32
-1
-33
0
1
-37
-3
-40
0
-40
0
-1
-41
-9
-50
-8
-58
0
0
-151
-18
-169
1
-168
0
-1
0
15
-28
-3
-25
208
0
13
-26
5
-30
215
0
10
-20
-5
-15
214
0
10
-21
3
-24
187
0
48
-94
0
-94
206
0
14
-24
-2
-22
146
0
13
-19
-2
-17
118
0
14
-27
-2
-25
110
0
22
-36
-2
-34
105
0
63
-106
-8
-98
120
25/27
(in millions of euros)
Global Banking and Investor Solutions
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Global Markets
Net banking income
o.w. Equities
o.w. FICC
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Financing and Advisory
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Securities Services and Brokerage
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
o.w. Asset & Wealth Management
Net banking income
o.w. Lyxor
o.w. Private banking
o.w. other
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
Q1 13
Q2 13
Q3 13
Q4 13
2013
Q1 14
Q2 14
Q3 14
Q4 14
2014
2,266
-1,469
797
-71
726
5
29
2,093
-1,352
741
-185
556
0
29
2,076
-1,421
655
-230
425
0
20
1,947
-1,831
115
-60
55
-1
-110
8,382
-6,073
2,308
-546
1,762
4
-32
2,127
-1,465
662
-54
608
0
25
2,295
-1,568
727
28
755
-5
19
2,115
-1,554
561
-27
534
0
28
2,189
-1,698
491
-28
463
0
26
8,726
-6,285
2,441
-81
2,360
-5
98
0
-189
571
4
567
15,598
0
-124
461
5
456
15,797
0
-74
371
4
366
14,356
-50
-76
-181
3
-184
13,214
-50
-462
1,222
16
1,206
14,742
0
-149
484
3
481
12,440
0
-180
589
4
585
12,772
0
-112
450
5
445
13,326
0
-78
411
4
407
13,701
0
-519
1,934
16
1,918
13,060
1,373
629
744
-808
565
-31
534
0
0
1,241
621
620
-703
539
-133
405
0
0
1,200
621
578
-783
417
-151
266
0
0
1,055
646
408
-1,081
-27
-65
-92
0
1
4,868
2,519
2,350
-3,374
1,494
-381
1,113
0
1
1,243
688
556
-799
444
-10
434
1
0
1,215
538
676
-743
472
6
478
-1
0
1,050
465
585
-703
347
-23
324
0
0
1,113
689
425
-806
307
-9
298
0
0
4,621
2,380
2,242
-3,051
1,570
-36
1,534
0
0
0
-153
381
4
378
10,280
0
-104
302
3
298
10,017
0
-55
211
4
206
8,717
0
-90
-181
2
-182
7,662
0
-401
713
13
700
9,169
0
-116
319
3
316
7,149
0
-126
351
2
349
7,262
0
-77
247
3
244
7,000
0
-80
218
3
215
6,992
0
-399
1,135
11
1,124
7,101
475
-308
167
-43
124
3
0
402
-277
125
-47
78
0
0
443
-286
156
-61
96
0
0
477
-345
132
13
145
0
0
1,797
-1,216
581
-138
443
3
0
455
-304
151
-43
108
0
0
532
-307
225
24
249
-8
-1
509
-323
186
-4
182
-1
1
524
-344
180
-20
160
-1
0
2,020
-1,278
742
-43
699
-10
0
0
-19
109
0
109
3,460
0
-1
77
1
76
3,531
0
-4
92
0
92
3,435
0
10
155
1
154
3,272
0
-14
432
2
430
3,425
0
-14
94
1
93
3,480
0
-48
192
-1
193
3,727
0
-29
153
2
151
4,061
0
4
163
-1
164
4,273
0
-87
602
1
601
3,886
155
-148
7
-1
6
1
0
177
-155
22
0
23
0
-1
153
-151
2
0
2
0
-3
159
-187
-28
0
-28
0
-144
644
-641
3
0
3
1
-148
168
-158
10
0
10
-1
-2
290
-314
-24
-1
-25
1
0
283
-306
-23
2
-21
0
0
306
-309
-3
3
0
2
2
1,047
-1,087
-40
4
-36
2
0
0
-3
5
0
5
836
0
-8
13
0
13
1,244
0
-1
-2
0
-2
1,199
-50
11
-211
0
-211
1,275
-50
0
-194
1
-195
1,139
0
-5
2
-2
4
781
0
11
-13
3
-16
733
0
8
-13
0
-13
1,268
0
-1
3
1
2
1,412
0
13
-21
2
-23
1,048
264
50
205
8
-206
58
4
62
0
28
272
38
231
4
-217
55
-5
50
0
30
281
47
227
7
-201
79
-19
61
0
23
255
52
195
8
-218
38
-7
30
0
33
1,072
186
858
28
-842
230
-27
203
0
114
261
48
207
6
-204
57
-1
56
0
27
258
50
201
7
-204
54
-1
53
3
20
273
49
219
5
-222
51
-2
49
1
27
246
55
188
3
-239
7
-2
5
-1
24
1,038
202
815
21
-869
169
-6
163
3
98
0
-14
76
0
76
1,023
0
-11
69
0
69
1,005
0
-14
70
0
70
1,006
0
-8
56
0
56
1,004
0
-47
271
0
271
1,009
0
-14
69
1
68
1,029
0
-17
59
0
59
1,050
0
-14
63
0
63
998
0
-1
27
1
26
1,023
0
-46
218
2
216
1,025
26/27
(in millions of euros)
Corporate Centre
Net banking income
o.w. financial liabilities
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Group
Net banking income
Operating expenses
Gross operating income
Net cost of risk
Operating income
Net income from other assets
Net income from companies accounted for by the
equity method
Impairment losses on goodwill
Income tax
Net income
O.w. non controlling interests
Group net income
Average allocated capital
Group ROE (after tax)
Q1 13
Q2 13
Q3 13
Q4 13
2013
Q1 14
Q2 14
Q3 14
Q4 14
2014
-1,287
-1,045
-55
-1,342
-127
-1,469
441
4
-21
53
-44
-65
-96
-161
1
2
-437
-223
-55
-492
-186
-679
-7
10
-402
-379
-95
-497
-2
-499
128
9
-2,147
-1,594
-249
-2,396
-411
-2,807
563
26
-342
-158
-24
-366
-3
-369
0
10
-357
-21
21
-336
-199
-535
206
8
-165
-4
-55
-220
0
-220
0
-15
-32
44
-38
-70
-201
-271
127
17
-896
-139
-96
-992
-403
-1,395
333
20
0
331
-692
34
-727
0
123
-36
38
-73
0
280
-395
33
-428
0
294
-68
45
-113
0
1,028
-1,191
150
-1,341
0
177
-182
23
-205
0
132
-189
20
-209
0
39
-196
14
-210
0
-42
-169
19
-188
0
306
-736
76
-812
4,981
-3,971
1,010
-927
83
448
50
6,120
-3,813
2,307
-985
1,322
0
46
5,636
-3,858
1,778
-1,093
685
-7
45
5,696
-4,405
1,291
-1,045
246
134
-80
22,433
-16,047
6,386
-4,050
2,336
575
61
5,676
-3,875
1,801
-667
1,134
-2
53
5,893
-3,897
1,996
-752
1,244
202
49
5,869
-3,981
1,888
-642
1,246
-7
39
6,123
-4,263
1,860
-906
954
-84
72
23,561
-16,016
7,545
-2,967
4,578
109
213
0
-119
462
98
364
41,298
2.8%
0
-298
1,070
115
955
41,761
8.4%
0
-93
630
96
534
42,283
4.3%
-50
-18
232
41
191
42,375
2.1%
-50
-528
2,394
350
2,044
41,929
4.4%
-525
-271
389
74
315
42,274
2.2%
0
-380
1,115
85
1,030
42,253
8.8%
0
-374
904
68
836
42,909
6,8%
0
-359
583
72
511
43,236
3.6%
-525
-1,384
2,991
299
2,692
42,665
5.3%
Societe Generale
Societe Generale is one of the largest European financial services groups. Based on a diversified universal banking model, the
Group combines financial solidity with a strategy of sustainable growth, and aims to be the reference for relationship banking,
recognised on its markets, close to clients, chosen for the quality and commitment of its teams.
Societe Generale has been playing a vital role in the economy for 150 years. With more than 148,000 employees, based in 76
countries, it accompanies 32 million clients throughout the world on a daily basis. Societe Generale’s teams offer advice and tailormade financial solutions to individual, corporate and institutional customers in three complementary core businesses:
Retail banking in France with the Societe Generale branch network, Crédit du Nord and Boursorama, offering a comprehensive
range of multichannel financial services at the leading edge of digital innovation.
International retail banking, financial services and insurance with a presence in emerging economies and leading
specialised businesses.
Corporate and investment banking, private banking, asset management and securities services, with recognised
expertise, top international rankings and integrated solutions.
Societe Generale is included in the main socially responsible investment indices: FTSE4Good (Global and Europe), Euronext
Vigeo (Global, Europe, Eurozone and France), Ethibel’s ESI Excellence (Europe) and 4 of the STOXX ESG Leaders indices.
For more information, you can follow us on twitter @societegenerale or visit our website www.societegenerale.com
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